BILL NUMBER: AB 1432	CHAPTERED  10/10/99

	CHAPTER   808
	FILED WITH SECRETARY OF STATE   OCTOBER 10, 1999
	APPROVED BY GOVERNOR   OCTOBER 7, 1999
	PASSED THE ASSEMBLY   SEPTEMBER 10, 1999
	PASSED THE SENATE   SEPTEMBER 9, 1999
	AMENDED IN SENATE   SEPTEMBER 9, 1999
	AMENDED IN ASSEMBLY   APRIL 26, 1999

INTRODUCED BY   Assembly Members Oller, Maddox, Villaraigosa, Scott,
and Cedillo, and Senators Brulte, Escutia, and Speier

                        FEBRUARY 26, 1999

   An act to amend Sections 1600 and 1603 of the Insurance Code, and
to add Section 12208 to the Revenue and Taxation Code, relating to
insurance.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1432, Oller.  Insurance:  service of process:  tax credit.
   (1) Existing law requires a foreign insurer to appoint a
designated agent for service of process, and deems the agent in law
to be a general agent and the principal agent of the insurer in this
state.
   This bill would make clarifying changes including that the agent
appointed may be a corporate officer of the insurer residing in this
state, and that for service of process the agent is the principal
agent of the insurer in this state.
   (2) Existing insurance tax law requires every insurer, as defined,
doing business in this state, to annually pay a tax on gross
premiums, as specified, at the rates provided by law.  Except as
otherwise provided, the rate of tax to be applied to the basis of the
annual tax in respect to each year is 2.35%.
   SB 527 and SB 171 of the 1999-2000 Regular Session would provide
for the issuance, until January 1, 2004, of policies of low-cost
automobile insurance to certain low-income motorists in certain areas
of the state.
   This bill would allow as a credit against that tax an amount equal
to the amount of the gross premiums tax due on account of pilot
project insurance for previously uninsured motorists, as specified.
   The bill would provide that the tax credit shall become operative
only if SB 171 and SB 527 are also enacted and become operative on or
before January 1, 2000.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 1600 of the Insurance Code is amended to read:

   1600.  The commissioner shall require every foreign insurer, as a
condition precedent to receiving and holding a certificate of
authority, to file and maintain in the commissioner's office a
writing designating an agent for service of process.  The agent
designated may be any person residing in this state, including, but
not limited to, any corporate officer of the insurer.  The writing
shall state the name of the agent and his or her place of business in
this state with sufficient particularity so that he or she can
readily be found by peace officers or process servers.  Appointment
of an agent reasonably available for service of papers, notice, proof
of loss, summons or other process during business hours shall be
continuously maintained by every admitted insurer subject to this
article while it holds a valid and unrevoked certificate of
authority.
  SEC. 2.  Section 1603 of the Insurance Code is amended to read:
   1603.  The person appointed and designated pursuant to Section
1600 shall be deemed in law a general agent, and shall for service of
process be the principal agent of the insurer in this state.
  SEC. 3.  Section 12208 is added to the Revenue and Taxation Code,
to read:
   12208.  (a) There shall be allowed as a credit against the amount
of tax, as defined in Section 28 of Article XIII of the California
Constitution, an amount equal to the amount of the gross premiums tax
due from the insurer on account of pilot project insurance for
previously uninsured motorists.
   (b) As used in this section "pilot project insurance for
previously uninsured motorists" means motor vehicle liability
insurance issued by an insurer under Article 5.5 (commencing with
Section 11629.7) or Article 5.6 (commencing with Section 11629.9) of
Chapter 1 of Part 3 of Division 2 of the Insurance Code, with respect
to an insured who, at the time of the issuance, owned or operated a
motor vehicle without proof of financial responsibility as defined in
Section 16020 of the Vehicle Code, and any renewal of that
insurance.
  SEC. 4.  Section 3 of this act shall become operative only if SB
527 and SB 171 of the 1999-2000 Regular Session are also enacted and
become effective on or before January 1, 2000.
